A RENT rise for council house tenants has been backed by Cabinet.
And it comes with a warning that more is to come in future years.
Yesterday’s decision means that tenants will face a bill up by 3.91% – around £264 a year more.
It will come into force from April and on average the monthly bill will be about £297.
Clr Peter McBride, Cabinet member for Place, said: “The increase is around 3.9%, effectively we are having to pass on Government cuts which means we’ve got to bring the rent into line with the cost of public housing.”
And the council warns that there will be further rises in the years to come to bridge the gap between the cost of council housing and the market rate.
Clr McBride added: “We’ll have to bring it closer to the market rate at some point in the future.
“Broadly speaking there’s about a 20% gap at the moment.
“We don’t want to have to do this but it’s inevitable that we have to.”
The 3.91% rise will be spread out so payments remain the same as 2012 rates. But instead of making 49 payments tenants will make 53.
And every tenant will have to make the weekly payments by direct debit, which will be a condition of all tenancy agreements.
Direct debit payments will be phased in, but tenants will have no alternative.
Clr Molly Walton, Cabinet member for Well-being and Communities, added: “I’m worried about people having to pay this rent increase.
“It’s quite a lot of money and we’re being forced to put this rent money up.
“It’s not only the bedroom tax people are having to pay more for, it’s council tax increases as well.”
